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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, PowerShares VRDO Tax-Free Weekly (NYSE: PVI ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at PVI and see what CAPS investors are saying about the ETF right now.
|Total Net Assets||$336.2 million|
|Investment Approach||Seeks investment results that correspond to the price and yield of the Bloomberg US Municipal AMT-Free Weekly VRDO Index. The fund generally invests at least 80% of its total assets in variable rate demand obligation bonds that are exempt from federal income tax with interest rates that reset weekly.|
|Year-to-Date / 1-Year / 3-Year Returns||0% / 0.2% / 0.4%|
SPDR Nuveen Barclays Capital Short Term Municipal Bond ETF
iShares S&P Short Term National AMT-Free Municipal Bond Fund
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 59% of the 29 members who have rated PVI believe the ETF will underperform the S&P 500 going forward.
All this ETF will ever produce is an equivalent to short-term rates paid by municipalities. Since they're tax-free yields, I'd imagine the rates will be even lower than short-term corporate rates. So basically you're getting nothing after the management fee. I can't believe anyone buys this.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.